SECURITIES LAW
Kerala High Court Declines To Stay Lakshya IPO, Cites Alternate Remedy Before SAT
The Kerala High Court on Thursday declined to stay the proposed Initial Public Offering (IPO) of Learnfluence Education Limited, the company operating the Lakshya Indian Institute of Commerce coaching platform. The Court held that the former promoter challenging the issue has an alternative statutory remedy before the Securities Appellate Tribunal (SAT). Justice Harishankar V. Menon passed the order on a writ petition filed by Adheesh Damodaran, a co-founder of Lakshya CA Campus and...
SEBI Proposes Consolidated Pay Disclosures For Mutual Fund AMCs, Flags Privacy Concerns
The Securities and Exchange Board of India (SEBI) has proposed replacing employee-wise remuneration disclosures by Asset Management Companies (AMCs) with consolidated disclosures. The market regulator said the move is aimed at streamlining the disclosure framework while maintaining transparency for unitholders. In a consultation paper issued on June 10, 2026, SEBI proposed that AMCs disclose aggregate remuneration paid to key categories of employees, along with the number of employees covered...
Supreme Court Declines To Interfere With SAT Order Clearing Biocon VP Of Insider Trading Charge
The Supreme Court has declined to interfere with a Securities Appellate Tribunal (SAT) ruling that exonerated Biocon Vice President Shreehas P. Tambe of insider trading allegations. The allegations arose from trades executed ahead of Biocon's proposed collaboration with Sandoz.Tambe, who was Biocon's Vice President at the time of the trades, is currently the Chief Executive Officer and Managing Director of BioconBy an order dated July 26, 2022, SAT partly allowed Tambe's appeal. It quashed the...
Kotak India Growth Fund Pays ₹10.87 Lakh To Settle SEBI Proceedings Over 5-Year Delay In Winding Up Scheme
Kotak India Growth Fund II has paid ₹10.87 lakh to settle proceedings that may be initiated by the Securities and Exchange Board of India (SEBI) over allegations that it delayed the winding up of a venture capital fund scheme and distribution of liquidation proceeds to investors by more than five years. The settlement order was passed by SEBI Whole Time Members Kamlesh C. Varshney and K.V.R. Murty. Kotak India Growth Fund II, a SEBI-registered venture capital fund, filed a suo motu...
SEBI Finds Rajesh Exports Prima Facie Misrepresented ₹15.15 Lakh Crore Revenue; Bars Promoter From Market
The Securities and Exchange Board of India (SEBI) on Friday passed an interim ex parte order against jewellery company Rajesh Exports Ltd (REL) and its promoter, Rajesh Mehta. The regulator has prima facie found that the company misrepresented about ₹15.15 lakh crore in revenues attributed to its subsidiaries and step-down subsidiaries over a five-year period. The interim order was passed by SEBI Whole Time Member Kamlesh Chandra Varshney. He observed that the company's reported revenues could...
SEBI Cancels Registrations Of Five AIFs For Failure To File Quarterly Reports
SEBI has cancelled the registrations of five Alternative Investment Funds (AIFs) after finding that they failed to file mandatory Quarterly Activity Reports (QARs) for four consecutive quarters and did not respond to show cause notices issued by the regulator. The orders were passed by SEBI Designated Authority S. Madhusudhanan. The entities whose registrations have been cancelled are Victory Investment Fund, Rudrabhishek Infrastructure Trust, Prime Realty Capital, Florintree India Flexi...
SEBI Proposes Easier Cash Distribution Rules For InvITs Funding Road Maintenance Through Debt
The Securities and Exchange Board of India (SEBI) has proposed allowing Infrastructure Investment Trusts (InvITs) to add back major maintenance expenses for road projects, to the extent they are funded through external debt, while calculating cash available for distribution to investors. The regulator said the move is intended to facilitate ease of doing business. The proposal stems from representations made by the Bharat InvITs Association (BIA). The industry body argued that major maintenance...
SEBI Imposes ₹29.15 Crore Penalty on Suzlon Energy, Directors, Officials Over Misleading Financial Disclosures
The Securities and Exchange Board of India (SEBI) has imposed penalties totalling ₹29.15 crore on Suzlon Energy Ltd. and two of its senior officials, two directors, after concluding that a series of intra-group transactions and financial disclosures created a misleading picture of the company's financial position. The order was passed by SEBI Whole Time Member Sandip Pradhan. The regulator found that Suzlon recognised gains from transactions involving the transfer of its operation and...
SEBI Simplifies Nomination Rules For Demat Accounts, Mutual Fund Folios; New Norms Effective From September 1
The Securities and Exchange Board of India (SEBI) on Friday modified the nomination norms for demat accounts and mutual fund folios. The changes are aimed at simplifying investor onboarding and the nomination process. Under the revised norms, investors opening new single-holder demat accounts or mutual fund folios will have to either nominate a beneficiary or formally opt out of nomination. For jointly held accounts and folios, nomination will be optional. SEBI has also permitted investors to...
SEBI Drops Proceedings Against NDTV After SAT Set Aside Finding That It Was Controlled By VCPL
The Securities and Exchange Board of India (SEBI) has disposed of adjudication proceedings initiated against New Delhi Television Limited (NDTV). The proceedings concerned alleged non-disclosure of a purported change in control of the company. SEBI noted that the Securities Appellate Tribunal (SAT) had set aside an earlier SEBI order that formed the basis of the proceedings and held that Vishvapradhan Commercial Private Limited (VCPL) had not acquired direct or indirect control of NDTV. ...
'Inelegantly Drafted': Supreme Court Lays Down Two-Part Framework For Establishing Fraud Under PFUTP Regulations
The Supreme Court on Friday held that the definition of fraud under Regulation 2(1)(c) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, suffers from "inelegant legislative drafting." Adopting a purposive interpretation of the provision, laid down a two-part framework for establishing fraud. Observing that the definition of fraud under Regulation 2(1)(c) appears to treat both deceitful intention and proof of wrongful gain or avoidance of loss as non-essential...